DHS Spends $24.3M on Engineering Services for Operations Analysis via Sole Source Contract

Contract Overview

Contract Amount: $24,269,100 ($24.3M)

Contractor: Applied Research Associates, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-03-01

End Date: 2022-12-31

Contract Duration: 305 days

Daily Burn Rate: $79.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT (SOLE SOURCE) IS TO ACQUIRE HIGHLY QUALIFIED CONTRACTOR TECHNICAL SERVICES TO SUPPORT ALL PHASES OF DHS OPERATIONS ANALYSIS AND THE DEVELOPMENT OF OPERATIONAL REQUIREMENTS DOCUMENTS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.3 million to APPLIED RESEARCH ASSOCIATES, INC. for work described as: THE PURPOSE OF THIS CONTRACT (SOLE SOURCE) IS TO ACQUIRE HIGHLY QUALIFIED CONTRACTOR TECHNICAL SERVICES TO SUPPORT ALL PHASES OF DHS OPERATIONS ANALYSIS AND THE DEVELOPMENT OF OPERATIONAL REQUIREMENTS DOCUMENTS. Key points: 1. Contract awarded to Applied Research Associates, Inc. for technical services supporting DHS operations analysis. 2. The contract is a sole-source award, raising questions about competition and potential cost savings. 3. Engineering Services (NAICS 541330) is a common sector for government technical support. 4. The contract duration is 305 days, with a total value of $24.3 million.

Value Assessment

Rating: questionable

The contract value of $24.3 million for engineering services is significant. Without comparable contract data or a competitive bidding process, it's difficult to assess if this price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no open competition. This limits the government's ability to explore alternative solutions and potentially secure more favorable pricing.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential technical services.

Public Impact

Citizens rely on DHS for national security, making the effectiveness of operations analysis crucial. The sole-source nature of this award could impact public trust in government procurement processes. Transparency in how sole-source contracts are justified is important for public accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Supports critical DHS operations
Acquires specialized technical services

Sector Analysis

This contract falls within the Engineering Services sector, which often involves specialized expertise for complex government operations. Benchmarks for similar sole-source engineering services contracts would be needed for a more precise comparison.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete.

Oversight & Accountability

The sole-source justification for this contract warrants careful review by oversight bodies to ensure it was necessary and that taxpayer funds are being used efficiently.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Sole-source justification requires scrutiny.
Potential for cost overruns due to lack of competition.
Limited opportunity for alternative technical solutions.
Impact on small business participation is unclear.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.3 million to APPLIED RESEARCH ASSOCIATES, INC.. THE PURPOSE OF THIS CONTRACT (SOLE SOURCE) IS TO ACQUIRE HIGHLY QUALIFIED CONTRACTOR TECHNICAL SERVICES TO SUPPORT ALL PHASES OF DHS OPERATIONS ANALYSIS AND THE DEVELOPMENT OF OPERATIONAL REQUIREMENTS DOCUMENTS.

Who is the contractor on this award?

The obligated recipient is APPLIED RESEARCH ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2022-03-01. End: 2022-12-31.

What specific technical services are being provided under this contract, and why were they deemed only available from a single source?

The contract is for acquiring highly qualified contractor technical services to support all phases of DHS operations analysis and the development of operational requirements documents. A sole-source award implies that the agency determined only Applied Research Associates, Inc. possessed the unique capabilities, expertise, or proprietary information necessary to fulfill these specific, critical requirements, thereby precluding a competitive process.

What is the risk associated with a sole-source award for critical DHS operations analysis services?

The primary risk of a sole-source award is the potential for inflated costs due to the absence of competitive pressure. Additionally, it limits the government's access to a broader range of innovative solutions and technical approaches that might be offered by other qualified firms, potentially impacting the overall effectiveness and efficiency of the analysis.

How does this contract contribute to the overall effectiveness of DHS operations?

This contract is intended to enhance the effectiveness of DHS operations by providing specialized technical services for analysis and the development of operational requirements. By ensuring DHS has the necessary expertise to refine its operations and define its needs clearly, the contract aims to improve mission outcomes and resource allocation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4300 SAN MATEO BLVD NE STE A-220, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,269,100

Exercised Options: $24,269,100

Current Obligation: $24,269,100

Actual Outlays: $9,923,017

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $16,598,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU104

IDV Type: IDC

Timeline